The
“just in case” Inventory
Specialists since 1957
What
is “just in case” Inventory?
It is an inventory strategy in which companies tend to keep large
inventories on hand. This type of
inventory management strategy aims to minimize the probability that a
product will sell out of stock. A company practicing this type of inventory strategy
essentially incurs higher inventory holding costs in return for a reduction in the
number of sales lost due to sold out inventory.
This 'just in case' strategy is used by companies that may have trouble
forecasting demand or that require excess service parts available for its loyal
customers or dealers. With this inventory strategy, companies tend to
incur significantly higher storage costs and personnel
inefficiencies. By selling this
type of slow-moving, excess service parts or obsolete inventory to the industry
leaders in customized inventory solutions at S.R. Sales, companies can recapture
these efficiencies and improve their bottom lines without sacrificing customer
service or OEM support.